Diamond Hill(DHIL) - 2025 Q3 - Quarterly Results

Financial Performance - Revenue for the third quarter of 2025 was $37.4 million, down 4% from $39.0 million in the same quarter of 2024[8] - Net income attributable to common shareholders was $13.6 million, a decrease of 7% compared to $14.6 million for the third quarter of 2024[8] - Earnings per share attributable to common shareholders - diluted was $4.99, down from $5.35 in the third quarter of 2024[8] - Investment income was $8.5 million, down 12% from $9.7 million in the third quarter of 2024[8] - The company reported a GAAP net income of $10,217,000 for the three months ended September 30, 2024, with an earnings per share of $5.35 and a profit margin of 26%[14] - The company experienced a decrease in GAAP net income from $28,801,000 in Q3 2024 to $27,674,000 in Q3 2025, reflecting a decline of approximately 3.9%[13][14] Shareholder Returns - The company returned approximately $6.7 million to shareholders, including $2.6 million through share repurchases and $4.1 million through dividends[5] - A regular quarterly cash dividend of $1.50 per common share and a special dividend of $4.00 per share were declared, to be paid on December 5, 2025[6] - Year-to-date, the company has repurchased nearly $14.5 million in shares, contributing to a total annual dividend of $10.00 per share[7] Profit Margins - The company reported a net operating profit margin of 26% for both the third quarter of 2025 and 2024[5] - For the three months ended September 30, 2025, the GAAP net income was $9,729,000, with an earnings per share of $4.99, maintaining a profit margin of 26%[13] - The adjusted non-GAAP net income for the same period was $11,831,000, resulting in an adjusted earnings per share of $3.24, with a profit margin of 32%[13] - For the nine months ended September 30, 2025, the GAAP net income was $30,557,000, with an earnings per share of $14.47 and a profit margin of 28%[13] - The adjusted non-GAAP net income for the nine months ended September 30, 2025, was $34,842,000, leading to an adjusted earnings per share of $9.32, with a profit margin of 32%[13] - The adjusted non-GAAP net income for the three months ended September 30, 2024, was $12,467,000, resulting in an adjusted earnings per share of $3.35, with a profit margin of 32%[14] Tax and Adjustments - The effective tax rate for the three months ended September 30, 2025, was 25.6%, compared to 26.4% for the same period in 2024[17] - Non-GAAP adjustments included a deferred compensation liability impact of $2,052,000 for Q3 2025, which was a 6% adjustment[13] Assets and Client Activity - Total assets under management (AUM) and assets under advisement (AUA) combined were $32.4 billion, compared to $33.2 billion as of September 30, 2024[5] - Net client inflows were $41.0 million, a significant improvement from net outflows of $22.0 million for the third quarter of 2024[5] Future Strategy - The company anticipates continued focus on technological developments and market expansion as part of its future strategy[19]